Japan to approve yen-pegged stablecoin JPYC for cross-border transfers and finance by Autumn

Japan set to approve JPYC, a yen-pegged stablecoin backed by deposits and government bonds, boosting cross-border transfers and attracting crypto investors.

Nikkei Asia reports that Japan’s Financial Services Agency is preparing to approve the issuance of a yen-denominated stablecoin, JPYC, this autumn (September-November). Its primary purpose will be for cross-border remittances and other financial activities.

The JPYC stablecoin will be pegged 1:1 to the Japanese yen and backed by highly liquid assets, such as bank deposits and Japanese government bonds. Sales of JPYC are expected to begin within weeks of the issuing company being registered as a licensed money transfer business in Japan.

Fintech firm JPYC is preparing to register as a money transfer business this month, in anticipation of approval for the stablecoin.


Japan’s Stablecoin Law

Stablecoins are blockchain-based digital currencies designed to maintain a stable value, pegged to fiat currencies such as the US dollar or Japanese yen, reducing volatility compared to other cryptocurrencies like Bitcoin or Ethereum.

In June 2023, Japan amended its laws to define stablecoins as “currency-denominated assets”. This legal recognition sets them apart from other digital assets and is seen as crucial in providing clarity, legitimacy, and investor protection. The law also permits banks, trust companies, and licensed money transfer firms to issue stablecoins legally, ensuring credibility and safer use.
The Future of JPYC Stablecoin

Once approved, individuals, companies, and institutional investors wishing to use JPYC will need to register, purchase coins, and transfer funds into electronic wallets. Applications range from international student remittances and business payments to blockchain-based asset management in decentralised finance (DeFi).

Fintech JPYC aims to issue as much as ¥1 trillion (US$6.81 billion) worth of stablecoins within three years. The project has already attracted interest from hedge funds specialising in crypto investments and family offices of high-net-worth individuals. A particularly attractive use case is carry trade strategies, exploiting interest rate differentials to generate profits.

Currently, the stablecoin market is dominated by USDT (Tether) and USDC (USD Coin), both issued by US-based firms Tether and Circle. Global financial giant Citi has projected that the stablecoin market could grow more than tenfold from its current size, potentially reaching US$3.7 trillion by 2030.

(2025/08/18-00:00)